Energy Resources Department
Business Objective: Gas
Mission Statement
Provide safe, reliable and efficient natural gas to our customers.
Desired Outcomes
  • Reliable receipt, transmission, distribution and delivery of natural gas to our customers.
  • Natural gas is delivered to our community safely.
  • Mesa's cost of natural gas is the lowest in our region.
  • Employees will perform their duties safely with no accidents or lost time.
                                                                                                                                 Energy Resources Performance Dashboard

Providing Safe, Reliable and Efficient Natural Gas Service for over 100 Years!

The City of Mesa has been offering safe, reliable, and efficient natural gas utility service for over 100 years. Established in 1917, our natural gas service area now includes roughly 107 square-miles in Mesa, as well as 227 square-miles in Pinal County, where in total we serve more than 65,000 customers. The area in Pinal County is known as the Mesa Magma Certified Area.

Performance Measures
Gas O&M Cost Per Customer
O&M Cost/Customer is a good indicator of whether the costs of our gas staff and operations are growing proportionally in comparison to the growth of the gas system as measured by the change in customers.
Energy Resources uses O&M Cost/Customer as a measure of Performance Improvement by comparing actual O&M Cost/Customer in the current year to the budgeted O&M dollars from the prior year divided by the forecasted customer count (our target values). The data also allows a comparison of how actual O&M Cost/Customer changes from year to year and allows us to measure whether our costs are increasing in proportion to the growth in the number of customers we serve.
Thus, O&M Cost/Customer is a measure of “technical” efficiency where O&M Costs would be the “input” and Customers, when served safely and reliably, would be the measure of output. Efficiency measures how well a business converts inputs such as capital, labor & materials into outputs such as revenue, products and services.

The September 2020 O&M Cost/Customer was $8.03/Customer.
  • 3% above the monthly target of $7.83/Customer
    • September’s O&M Costs were $21,661 above the forecast used to develop the target
  • 3% greater than August's O&M Cost/Customer of $7.81 per customer.
    • O&M Costs increased approximately 3% from August to September.

The August 2020 O&M Cost/Customer was $7.81/Customer.
  • 0.3% below the monthly target of $7.83/Customer
    • August’s O&M Costs were $6,789 above the forecast used to develop the target
  • 13% greater than July's O&M Cost/Customer of $6.93 per customer.
    • O&M Costs increased approximately 12% from July to August.
The August O&M Cost/Customer was below the target and increased from July. Service-related activities came in approximately 8% above budget, Construction activities came in 3% under budget, Locating came in 26% above budget, and Compliance came in 3% under budget. Property Damages came in 46% above budget. Performance was offset by a 2% increase in customer base over projections. Construction activities continue to focus on new growth projects.

The July 2020 O&M Cost/Customer was $6.93/Customer.
  • 11% below the monthly target of $7.83/Customer
    • July’s O&M Costs were $50,859 less than the forecast used to develop the target
  • 21% below June’s O&M Cost/Customer of $8.78 per customer.
    • O&M Costs decreased approximately 21% from June to July.
The July O&M Cost/Customer was below the target and decreased from June. Service-related activities came in approximately 2% under budget, Construction activities came in 23% under budget, Locating came in 23% above budget, and Compliance came in 3% above budget. Property Damages came in 111% above budget. Performance was offset by a 2% increase in customer base over projections. Construction activities continue to focus on new growth projects.

The June 2020 O&M Cost/Customer was $8.78/Customer
  • 9% above the monthly target of $8.06/Customer.
    • June’s O&M Costs were $68,381 above the forecast used to develop the target.
  • 26% over May’s O&M Cost/Customer of $6.98 per customer.
    • O&M Costs increased approximately 26% from May to June.
The June O&M Cost/Customer was above the target and increased from May. Service-related activities came in approximately 19% below budget, Construction activities came in 2% above budget, Locating came in 24% above budget, and Compliance came in 9% under budget. Property Damages came in 48% above budget. Performance was offset by a 4% increase in customer base over projections. Construction activities continue to focus on new growth projects.

The May 2020 O&M Cost/Customer was $6.98/Customer
  • 13% below the monthly target of $8.06/Customer.
    • May’s O&M Costs were $52,971 less than the forecast used to develop the target.
  • 33% less than April’s O&M Cost/Customer of $10.44 per customer.
    • O&M Costs decreased approximately 33% from April to May.
The May O&M Cost/Customer was below the target and decreased from April. Service-related activities came in approximately 1% under budget, Construction activities came in 1% under budget, Locating came in 29% above budget, and Compliance came in 87% under budget due to a transfer of an employee salary of approximately $51,000 to CIP for the fiscal year. Property Damages came in 67% above budget. Performance was offset by a 3% increase in customer base over projections. Construction activities continue to focus on new growth projects.

The April 2020 O&M Cost/Customer was $10.44/Customer.
  • 8% below the monthly target of $11.31/Customer.
    • April’s O&M Costs were $33,824 less than the forecast used to develop the target.
  • 35% more than March’s O&M Cost/Customer of $7.72 per customer.
    • O&M Costs increased approximately 34% from March to April.
The April O&M Cost/Customer was below the target and increased from March. There were three paychecks this month which increased the target from $8.06 to $11.31. Service-related activities came in approximately 12% above budget, Construction activities came in 13% under budget, Locating came in 26% above budget, and Compliance came in 14% under budget. Property Damages came in 21% under budget. Performance was offset by a 4% increase in customer base over projections. Construction activities continue to focus on new growth projects.

The March 2020 O&M Cost/Customer was $7.72/Customer
  • 4% below the monthly target of $8.06/Customer.
    • March’s O&M Costs were $383 more than the forecast used to develop the target
  • 1.6% less than February’s O&M Cost/Customer of $7.85 per customer.
    • O&M Costs decreased 1% from $534,576 in February to $529,234 in March.
The March O&M Cost/Customer was below the target and decreased from February. Service-related activities came in 1% above budget, Construction activities came in 3% below budget, Locating came in 20% above budget, and Compliance came in 1% over budget. Property Damages came in 81% over budget, however all damages resulted in the contractor being billed and will return as Other Revenue once paid. Performance was offset by a 4.5% increase in customer base over projections. Construction activities continue to focus on new growth projects.

The February 2020 O&M Cost/Customer was $7.85/Customer
  • 3% below the monthly target of $8.06/Customer.
    • February’s O&M Costs were $5,725 more than the forecast used to develop the target
  • 18.3% less than January’s O&M Cost/Customer of $9.61 per customer.
    • O&M Costs decreased 17.5% from $648,093 in January to $534,576 in February.
The February O&M Cost/Customer was above the target and increased from January due to Service-related activities came in 7% above budget, Construction activities were at budget, and Locating came in 23% above budget. Performance was offset by a 3.7% increase in customer base over projections. Construction activities continue to focus on new growth projects.

The January 2020 O&M Cost/Customer was $9.61/Customer
  • 19% above the monthly target of $8.06/Customer.
    • January’s O&M Costs were $119,242 more than the forecast used to develop the target
  • 16% more than December’s O&M Cost/Customer of $8.30 per customer. 
    • O&M Costs increased 16% from $558,616 in December to $648,093 in January.
The January O&M Cost/Customer was above the target and increased from December due to service-related activities came in 27% above budget, construction activities came in 12% above budget, and compliance came in 21% above budget. The main reason for this overage was the vacation pay-out, accounting for more than 70% of the overage and valued at $86,736. Performance was offset by a 3% increase in customer base over projections. Construction activities continue to focus on new growth projects.

The December 2019 O&M Cost/Customer was $8.30/Customer.
  • 3% above the monthly target of $8.06/Customer.
    • December’s O&M Costs were $29,765 more than the forecast used to develop the target.
  • 3% more than November’s O&M Cost/Customer of $8.04 per customer. 
    • O&M Costs increased 4% from $536,395 in November to $558,616 in December.
The December O&M Cost/Customer was above the target and increased from November, partially due to an increase in damage costs by 10% over budget. Locating charges exceeded budget by 11.5% due to increased project requests; and services exceeded their budget by 40% due to overtime costs. Performance was offset by a 3% increase in customer base over projections. Construction activities continue to focus on new growth projects.

The November 2019 O&M Cost/Customer was $8.04/Customer
  • 0.2% below the monthly target of $8.06/Customer.
    • November’s O&M Costs were $7,544 more than the forecast used to develop the target.
  • 28% less than October’s O&M Cost/Customer of $11.19 per customer. 
    • O&M Costs decreased 28% from $740,928 in October to $536,395 in November.
The November O&M Cost/Customer was below the target and decreased from October due to an increase in damage costs that exceeded the budget by 230%. Locating charges continue to exceed budget due to increased project requests. Performance was offset by a 1.7% increase in customer base over projections. Construction activities continue to focus on new growth projects.

The October 2019 O&M Cost/Customer was $11.19/Customer
  • 1% below the monthly target of $11.31/Customer.
    • October’s O&M Costs were $1,317 below the forecast used to develop the target
  • 43% more than September’s O&M Cost/Customer of $7.83 per customer. 
    • O&M Costs increased 43% from $516,490 in September to $740,928 in October.
The October O&M Cost/Customer was below the target and increased from September due to an increase in damages by 41% over budget. Locating charges exceeded their budget by 9% due to project request increases. Performance was offset by a 1% increase in customer base over projections. Construction activities continue to focus on new growth projects.

The September 2019 O&M Cost/Customer was $7.83/Customer.
  • 3% below the monthly target of $8.06/Customer.
    • September's O&M Costs were $12,361 less than the forecast used to develop the target.
  • 6.2% less than August’s O&M Cost/Customer of $8.35 per customer. 
    • O&M Costs decreased 6% from $549,748 in August to $516,490 in September.
The September O&M Cost/Customer was below the target and decreased from August due to a 46% decrease in damage costs below budget. Locating costs exceeded their budget by 25%, due to an 36% increase in overtime and $4,177 for new unbudgeted equipment purchases.  Performance was offset by a 1% increase in customer base over projections. Construction activities continue to focus on new growth projects.

The August 2019 O&M Cost/Customer was $8.35/Customer.
  • 4% above the monthly target of $8.06/Customer.
    • August O&M Costs were $20,897 more than the forecast used to develop the target.
  • 18% more than July’s O&M Cost/Customer of $7.06 per customer. 
    • O&M Costs Increased 19% from $463,276 in July to $549,748 in August.
There were two main reasons August’s O&M Cost/Customer exceeded the Target of $8.06. First, damages this month equated to a 236.4% increase, exceeding the budget by $9,134; Second, there was a Military budget adjustment that hit our O&M for a returning employee which equated to $18,256. Additionally, performance was offset by a 1% increase in customer base over projections. Construction activities continue to focus on new growth projects.

The July 2019 O&M Cost/Customer was $7.06/Customer.
  • 12% below the monthly target of $8.06/Customer.
    • July O&M Costs were $65,575 less than the forecast used to develop the target.
  • 10% less than June’s O&M Cost/Customer of $7.85 per customer. 
    • O&M Costs decreased 11% from $517,937 in June to $463,276 in July.
The July O&M Cost/Customer was below the target and performance was offset by an increase in customer base over projections. Construction activities continue to focus on new growth projects.


Reliability - Outage Frequency (SAIFI)

September 2020 Outage Frequency (SAIFI):
There were five (6) distribution system damages this month in our gas service territory which resulted in three (4) unplanned outages. Gas service was interrupted to three (6) customers. In all five (6) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

August 2020 Outage Frequency (SAIFI):
There were five (5) distribution system damages this month in our gas service territory which resulted in three (2) unplanned outages. Gas service was interrupted to three (2) customers. In all five (5) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

July 2020 Outage Frequency (SAIFI):
There were five (6) distribution system damages this month in our gas service territory which resulted in three (1) unplanned outages. Gas service was interrupted to three (1) customers. In all five (6) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

June 2020 Outage Frequency (SAIFI):
There were five (2) distribution system damages this month in our gas service territory which resulted in three (1) unplanned outages. Gas service was interrupted to three (1) customers. In all five (3) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

May 2020 Outage Frequency (SAIFI):
There were five (10) distribution system damages this month in our gas service territory which resulted in three (8) unplanned outages. Gas service was interrupted to three (41) customers. In all five (10) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

April 2020 Outage Frequency (SAIFI):
There were five (5) distribution system damages this month in our gas service territory which resulted in three (3) unplanned outages. Gas service was interrupted to three (3) customers. In all five (5) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

March 2020 Outage Frequency (SAIFI):
There were three (3) distribution system damages this month in our gas service territory which resulted in two (2) unplanned outages. Gas service was interrupted to two (2) customers. In all three (3) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

February 2020 Outage Frequency (SAIFI):
There was one (1) distribution system damage this month in our gas service territory which resulted in one (1) unplanned outage. Gas service was interrupted to one (1) customer. In all instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

January 2020 Outage Frequency (SAIFI):
There were two (2) distribution system damages this month in our gas service territory which resulted in one (1) unplanned outages Gas service was interrupted to one (1) customer. In all two (2) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

December 2019 Outage Frequency (SAIFI):
There were seven (7) distribution system damages this month in our gas service territory which resulted in six (6) unplanned outages Gas service was interrupted to six (6) customers. In all six (6) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

November 2019 Outage Frequency (SAIFI):
There were four (4) distribution system damages this month in our gas service territory which resulted in zero (0) unplanned outages Gas service was interrupted to zero (0) customer. In all four (4) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

October 2019 Outage Frequency (SAIFI):
There were twelve (12) distribution system damages this month in our gas service territory which resulted in five (5) unplanned outages Gas service was interrupted to eleven (11) customers. In all five (5) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

September 2019 Outage Frequency (SAIFI):
There were three (3) distribution system damages this month in our gas service territory which resulted in one (1) unplanned outages Gas service was interrupted to one (1) customer. In all three (3) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

August 2019 Outage Frequency (SAIFI):
There were four (4) distribution system damages this month in our gas service territory which resulted in four (4) unplanned outages. Gas service was interrupted to seventy-five (75) customers. In all four (4) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages. One damage to a 4" PE main caused a seventy-two (72) customer outage.

July 2019 Outage Frequency (SAIFI):
There were eight (8) distribution system damages this month in our gas service territory which resulted in five (5) unplanned outages. Gas service was interrupted to thirteen (13) customers. In all eight (8) instances, the contractor demonstrated insufficient excavation practices and was billed for the damages.

Lost-Time Accidents
The City of Mesa Gas Utility has gone over 995 days without a lost-time accident (01/23/2018). The following is a summary the performance metric data for FY19-20:
July 2019 through June 2020:
In accordance with our department's values to work safely, there have been no lost-time accidents from July 2019 through June of 2020 in the Compliance, Gas Operations, Construction and Technical Services, Locating and Material Supply areas. Employees continue to communicate and use safe working practices as part of the daily activities, safety topics are covered in the weekly tailgate sessions, as well as the monthly department meetings.


Gas Bill Comparison - SWG
Mesa Average Residential Customer Gas bills are 0.7% more than Southwest Gas for the period October 2019 to September 2020.  Southwest Gas has had negative rate adjustments since June 2019, averaging a $0.025 per Therm reduction to their delivery charge over this period of time.